15th Dec 2021 10:02
(Alliance News) - Currys PLC on Wednesday said it has seen "strong UK market share gains", despite supply chain challenges for the electrical goods retailer, though it warned of weaker recent trading.
Currys shares were down 9.6% to 112.10 pence Wednesday morning in London, one of the worst performers in the FTSE 250 index of mid-caps.
In the half year that ended October 30, revenue fell 1.5% annually to GBP4.79 billion from GBP4.86 billion. Pretax profit, however, rose by 6.7% to GBP48 million from GBP45 million, helped by net finance costs being reduced by 15% to GBP47 million from GBP55 million a year ago.
On a like-for-like basis, revenue edged up by 1% annually, though it was up 15% from two years ago. The improvement in like-for-like revenue was led by the business in UK and Ireland, which rose by 3%, while international revenue, meaning from the Nordics and Greece, was flat. On 2019, UKI revenue was up 11% and international revenue up by 19% on a like-for-like basis.
"We've had a strong first half of the year. We grew colleague engagement and customer satisfaction, gained market share and stabilised gross margins in the UK, grew profits and generated strong cash flow," Chief Executive Alex Baldock said.
The London-based company, which announced plans for a GBP75 million buyback in November, said the programme will begin in January.
Currys declared an interim payout of 1.00 pence per share, having not paid one a year earlier.
An increased dividend, along with a return of surplus cash and a pledge to invest in the business, are among its "refreshed capital allocation priorities".
Looking ahead, CEO Baldock added: "Our market has been softer over recent weeks, and we may face into further headwinds from omicron and associated restrictions, but the stronger business we've built can ride out both the industry-wide disruption to supply chains and bumpy demand. After the strong first half, we remain on track to meet the expectations we set out a month ago for full-year adjusted pretax profit of around GBP160 million."
In the year that ended this past May 1, when the company was still known as Dixons Carphone, adjusted pretax profit was GBP156 million, up from GBP116 million in financial 2020.
By Tom Waite; [email protected]
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